Do Government Always Default?

Posted Jan 12, 2014 by Martin Armstrong

QUESTION:Mr. Armstrong; Is there any exception to the Sovereign Debt Crisis? Has any government survived?

Thanks

HJ

ANSWER: No. There is no exception whatsoever. Countries such as Spain were at the top of their game – the richest in the world. They borrowed against every ship because they could not wait for the money. They defaulted 7 times wiping out the Italian bankers and then the Germans. They successfully sent themselves into a third world status. Even England and France defaulted (see 13th and 14th century Panics).

Any established government defaults on its debts. Those that are revolutionary and have no credit – hyperinflate. Either way, there is NO government that has EVER survived. Government and bankers have been entwined since the dawn of civilization. (See the Great Athenian Financial Crisis of 354BC). Corruption even in Rome during the elections sent interest rates up dramatically to afford to pay bribes. (See Financial Panic of 53BC).